First time home buyer question. (appraisal, comparable, price, value)
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Looking to purchase my first home. I checked the fair market value on the home and it's at $101,750. The home was just listed yesterday with an asking price of $119,900. What is the relationship between the fair market value of a home and the sellers asking price? Is it normal to ask nearly 20% more of the fair market value?
Your realtor will help you come up with a market price by looking at recently sold comparable homes. The "zestimate" is crap, honestly. If you and your realtor determine that the house is worth X, then offer something close to that number. Some sellers do pull numbers out of the air, despite better advice. There is not necessarily any relationship between what a home is listed for and what its worth; but a reasonable seller and a capable realtor should be in the right ballpark.
Sounds like a 'Zestimate' which is very iffy in some markets, and absolute worthless in others. Doesn't take condition, etc into consideration.
The OP is showing a lower 'estimate' than asking price. As an appraiser what I absolutely hate is when the 'Zestimate' is way over the market and I am having to explain why my appraisal is often tens of thousands less, and the borrower just doesn't understand that there is no relationship between the market and his data.
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